Environmental, social and governance (ESG)-focused investing is of increasing interest to investors, plan sponsors and regulators. So keeping up to date on what’s happening is becoming even more important.
For example, the Department of Labor announced in March that it will not enforce the December 2020 final rules on Financial Factors in Selecting Plan Investments and Fiduciary Duties Regarding Proxy Voting and Shareholder Rights. Instead, the DOL advised that it intends to conduct stakeholder outreach to determine how to craft rules that better recognize the important role that ESG integration can play in the evaluation and management of plan investments, while continuing to uphold fundamental fiduciary obligations.
Meanwhile, the SEC—citing investor demand—announced that it is conducting its own review of whether to seek additional guidance on climate-related disclosures in public company filings, and that its 2021 exam priorities will include a greater focus on climate and ESG-related risks.
And while numerous studies and surveys suggest that investors are interested in ESG factors and funds that incorporate ESG criteria, there still does not appear to be consistent terminology and standards when it comes to describing ESG integration and sustainable investing strategies.
To help you stay up to date on the latest developments, the NAPA resource page includes links to legislative and regulatory documents, NAPA news coverage and commentary, as well as industry analyses, advisories and studies, including white papers and thought leadership content.
The new ESG Investing resource page is here; you can also find it via the “Hot Topics” page in the Industry Intel tab in the top nav bar. In addition, you can browse our ESG news coverage and commentary here.
